The ruling could have broad implications for digital reselling.
Unlike physical music CDs, Judge Richard Sullivan ruled that the "first sale doctrine" did not apply.
The doctrine is a long-established rule which allows the reselling of goods to a new owner. In other words, selling a CD once you no longer want it. But in the digital world, where duplication is much easier, the first sale doctrine was not appropriate, the judge said. "It is simply impossible that the same 'material object' can be transferred over the internet," he wrote in his ruling.